Buy to Debt - More bad news for house prices BBC2 Friday 12 October

beingjdc

PasturesNew wrote: »

I had to google humax to find out what it was... never heard the word before. Then I closed google as I could see from the results I'd never understand it.

I have one, haggled down the display model in Dixons to about 40% off which I know from my time at Comet is the maximum they're meant to do. It's just like having digital TV and a DVD recorder in one box, except it's one huge DVD inside the machine instead of lots of ones you take out and keep in a pile...

Biggie

I really didn't understand the family who were about to get their home reprocessed but them some guys bails them out and lets them rent it but paying off their mortgage and offering well below the market rate..


Would they not have been better off going ahead with the repo, bank would have sold the house paid back the dept and they would be left with the equity.......


Is this not the case somebody please correct me

beingjdc

Biggie wrote: »

Is this not the case somebody please correct me

The bank might well have auctioned it off at below market value anyway - and their credit rating would have been stuffed for the foreseeable with a repossession on their file. Plus people get attached to their homes.

Now why they didn't start looking for a buyer sooner at the market price, that's another question.

Gorgeous_George

epz wrote: »

why, unless they work for the property sector in some ways prices going down is good news for most people.

Lower prices is good news for BTL LLs. They will be ready to increase their portfolio when prices fall and yields improve.

If I had a BTL and a home both valued at £100K, a 20% fall in value would see my home lose £20K. My BTL on the other hand would lose £20K less tax.

Also, repossessions see lots of houses remaining empty while a buyer is found. This adds to the pressure on the rental market.

GG

Biggie

beingjdc wrote: »

The bank might well have auctioned it off at below market value anyway - and their credit rating would have been stuffed for the foreseeable with a repossession on their file. Plus people get attached to their homes.

Now why they didn't start looking for a buyer sooner at the market price, that's another question.

yeah but it sounded like it had a fair amount of equity in the property,
ok people get attched to their properties but surly there's for a price they would have moved on..

i'm sure the bank would have auctioned the property, may well be below market value but surly wouldn't have been as low as what the guy offered 60k I think it was.